TEXT-Fitch Assigns Medallion Trust Series 2013-1 Expected Ratings

SYDNEY, February 17 (Fitch) Fitch Ratings has assigned
expected ratings to Medallion Trust Series 2013-1 as listed
below. The transaction is a securitisation of first-ranking
Australian residential, full-documentation, mortgage loans
originated by the Commonwealth Bank of Australia (CBA,
'AA-'/Stable/'F1+'), due August 2045.

AUD500m Class A1 notes: 'AAA(EXP)sf'; Outlook Stable

AUD90m Class A2 notes: 'AAA(EXP)sf'; Outlook Stable

AUD100m Class A3 notes: 'AAA(EXP)sf'; Outlook Stable

AUD45m Class B notes: 'AA-(EXP)sf'; Outlook Stable

AUD15m Class C notes: not rated

The notes will be issued by Perpetual Trustee Company
Limited, in its capacity as trustee of the Series. The final
ratings are contingent on the receipt of final documentation
conforming to information already received.

At the cut-off date, the total collateral pool consisted of
3,271 loans totalling approximately AUD750m. Loans included in
the pool were originated by CBA . The weighted average current
loan-to-value ratio was 58.9%, and the weighted average
seasoning was 45 months. The pool comprises 100% fully verified
documentation loans. Investment loans comprise 11.9% of the
pool, while owner occupier mortgages make up the remainder.
Fixed-rate mortgages account for 10.6% of the pool. Loans
covered by lenders' mortgage insurance - all from Genworth
Financial Mortgage Insurance Pty Limited - are limited to
approximately 22.7% of the pool. The pool has geographic
diversification, with the largest state concentration being New
South Wales (32.7%). Fitch has incorporated all the above
factors in its credit analysis of the transaction.

The 'AAA(EXP)sf' Long-Term ratings with Stable Outlook
assigned to the Class A notes are based on the 8% credit
enhancement provided by the subordinate class B notes and class
C notes; the lenders' mortgage insurance; and the liquidity
facility provided by the CBA, which is equivalent to 3% of the
aggregate invested amount of the notes. The ratings also take
into account an income reserve provided by CBA, which is
equivalent to 0.5% of the total original principal amount of the
notes; step-down conditions for the pro rata allocation of
principal repayments; interest rate arrangements the trustee has
entered into; and CBA's mortgage underwriting and servicing
capabilities.

The expected 'AA-(EXP)sf' Long-Term ratings with Stable
Outlook assigned to the class B notes are based on all the
strengths supporting the class A notes except their credit
enhancement levels.

Fitch's stress and rating sensitivity analysis is discussed
in the corresponding presale report entitled "Medallion Trust
Series 2013-1", published today. Included as an appendix to the
report are a description of the representations, warranties, and
enforcement mechanisms